GULSHAN GROVER,NEW DELHI vs. ITO WARD - 59(4), NEW DELHI

6. The CIT(A) has erred in law by upholding the order of AO without considering the expenditure required to incur for earning cash/revenue of during the F.Y., which is bad in law and not as per the Income Tax Act, 1961.

7. The CIT(A) has erred in law by upholding the order of AO without considering the principle of peak high principal adopted by Honb. Courts to compute the income of Assessee, which is bad in law and not as per the Income Tax Act, 1961.

at time of hearing which is bad in law and not as per The Income Tax Act, 1961.”

3. Though the assessee has raised several grounds before us, the only effective issue to be decided on merits is as to whether a sum of ₹84,84,075/- could be added as income in the hands of the assessee towards unexplained cash deposit in the bank account.

Gulshan Grover AGBPG4348N. The assessee was maintaining saving bank account with ICICI Bank during the period under consideration. While filing the return, the trading transactions reflected in the said ICICI bank was not considered by the assessee. Hence, the assessee disclosed the net effect of the trading transactions of ICICI Bank in Income Declaration Scheme,2016 on 30.09.2016 and paid due taxes thereon. This declaration made in IDS, 2016 was duly accepted by the department. Based on the information received by the ld AO regarding savings bank account maintained by the assessee in ICICI Bank, the assessment of the assessee were sought to be reopened for AY 2010- 11 by issuance of notice u/s 148 of the Act on 29.03.2017 on the ground that there was cash deposit made in the bank account by the assessee. This information was admittedly received by the ld AO as part of intimation for non-filing of Income Tax Return for AY 2010-11 through NMS cycle for PAN AEFPG5786G. The assessee did not cooperate with the ld AO by furnishing the details by explaining the source for cash deposits made in the sum of ₹84,84,075/- in ICICI Bank Account, which compelled the ld AO to make the addition of ₹84,84,075/- as unexplained cash deposit while completing the reassessment proceedings u/s 144 read with section 147 of the Act on 21.12.2017. The ld CIT(A) gave relief of ₹2,04,750/- being the income declared by the assessee under IDS, 2016 by way of telescoping benefit and sustained the remaining addition of ₹82,79,325/-. Before us, the ld AR filed the workings of peak credit in the said undisclosed bank account on the premise that there was huge cash withdrawals made from the very same undisclosed bank account and cash deposit made thereon and in that scenario, only peak credit thereon should be brought to tax. We are in complete agreement with this argument of the ld. AR. However, the peak credit working requires factual verification by the ld AO. Hence, we deem it fit and appropriate to restore this issue to the file of the ld AO for verification of the peak credit workings and bring to tax only the peak credit as undisclosed income of the assessee. The assessee is also directed to cooperate with the ld AO by explaining the peak credit workings. Accordingly, the Ground Nos. 5 to 8 raised by the assessee are allowed for statistical purposes.

Gulshan Grover 5. It is a fact that assessee has got 2 PAN cards i.e. AGBPG4348N and AEFPG5786G wherein his name and his father„s name duly match. Hence all the allegations leveled by the assessee and the ld AR before us with regard to the wrong framing of assessment and illegal assumption of jurisdiction by the ld AO are completely irrelevant when there is mistake on the part of the assessee itself to hold two PAN cards, which is illegal. Accordingly, the revised Ground Nos. 1 to 4 are hereby dismissed.